The Indian rupee regained strength against the US dollar in early trade on Tuesday amid improved investor sentiment and reduced tensions in West Asia.
The currency was trading 0.23 per cent, or 24 paise, higher at 95.47 against the US dollar compared to its previous close of 95.70.
Today’s appreciation was supported by stabilising crude oil prices and a softer dollar index following a pause in fighting between Israel and Iran.
Brent crude futures retreated from near $98 to around $94 per barrel, offering relief to the rupee as India is a major importer of crude oil.
The rally in the domestic currency also comes as investors returned to the stock market after weeks of uncertainty and heavy capital outflows.
The Reserve Bank of India (RBI) continued to manage both sides of the currency market, helping the rupee offset earlier losses caused by foreign capital outflows.
The Ministry of Finance has also hinted at possible measures, including reducing long-term capital gains tax on foreign direct investments, to stabilise the market and economy.
The RBI’s recent decision to keep the repo rate unchanged for the financial year 2026-27 has further eased concerns.
Back-to-back stabilisation measures by the government and financial institutions have helped ease pressure on the currency and stock markets.
However, it remains to be seen whether investors will return in strength or continue with a cautious approach.
Also read: Rupee tumbles 56 paise to finish at 95.74 against US dollar
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